From February 1 next year, “corporate reconstruction” and “corporate consolidation” transactions will be subject to duty in NSW. While the duty will be calculated on a concessional basis, at a 90 per cent discount, such transactions are presently exempt from duty.

The change was made as a part of the NSW budget announced last week and has already passed into law. In a speech to Parliament the NSW Minister for Finance, Courtney Houssos, said the government had reviewed existing tax concessions in light of budget pressures and decided to “reduce from 100 per cent to 90 per cent the tax discount given to large and multinational corporations that restructure”.